Key Mining Themes: Americas
BMI View: The Americas mining sector will remain a top global source of industrial and precious metals, as well as coal, over the coming quarters. The region possesses significant mineral reserves and remains largely politically stable, ensuring both multinational and junior firms continue investing in mining assets. Chile, Peru, and the US will remain world leaders in copper production, while Brazil will be second only to Australia in iron ore production. Canada's status as a top destination for capital market fundraising will also enable mining-related investment across North and Latin America.
Mexico & Peru To Remain Top Destinations
Mexico and Peru will remain the fastest growing, diversified mining sectors in the Americas over the coming quarters. While we currently forecast the Peruvian mining sector will see a modest contraction for 2014, we expect positive growth to resume in 2015 and for growth to supersede its southern, more developed neighbour Chile. Mexico and Peru maintain open investment regimes, generally favourable regulatory frameworks, and significant untapped mineral deposits. Combined with these attributes, their steadily improving business environments and solid macroeconomic outlooks will attract long-term mining investment. While Mexico has among the highest mining royalties in the region and Peru continues to see significant social opposition to large-scale mining projects, as of yet inbound investment has continued apace, which will enable steady growth in both mined output and industry value in the coming years.
|Steady Growth In Years Ahead|
|Mexico & Peru - Mining Industry Value Growth (%)|